THE PHILIPPINE manufacturing sector rebounded solidly in January this year, posting a nine-month high in factory activity on the back of strong growth in new orders.
S&P Global’s survey of around 400 firms showed the Philippines’ Purchasing Managers’ Index (PMI) jumped to 52.9 in the first month of 2026, up sharply from 50.2 in December.
The latest reading marked the strongest improvement in operating conditions since April.
According to the report, the rebound was driven by faster growth in new orders, supported by improving underlying demand. The upturn in sales also led manufacturers to raise production levels, with output increasing for the first time in five months.
“After a prolonged period of subdued growth in the second half of 2025, the first PMI data release for 2026 points to a marked shift in momentum,” Maryam Baluch, economist at S&P Global Market Intelligence, said.
“New orders registered a strong and accelerated uptick, supported in part by a renewed rise in export demand. As a result, production returned to expansion territory for the first time in five months,” Baluch added.
Still, despite the strong start to the year, business confidence weakened sharply as firms’ optimism for the next 12 months fell to the second-lowest level on record, weighed down by economic uncertainty in key export markets. (Nyah Genelle C. De Leon © Philippine Daily Inquirer)
